Photo: Frank Jordans Associated Press
Quadriga CX, represented as the main platform for cryptomonnaies in Canada, allowed to exchange bitcoin, litecoin and etherum.
An important canadian site of cryptomonnaies Quadriga CX has collapsed because of a scam-type Ponzi scheme put in place by his late boss, causing it to lose millions of dollars to its customers, were entered into the canadian authorities.
In February 2019, Quadriga CX is based in Vancouver, had been placed under the protection of the bankruptcy act after the sudden death of his young p.-d. g. , Gerald Cotten, who had made it inaccessible to millions of dollars in cryptomonnaies.
His widow, Jennifer Robertson, had said that he was the only one to know the codes to access it, which had prevented the customers to recover a portion of the money.
“Quadriga collapsed due to a fraud committed by Mr. Cotten,” said the securities Commission of Ontario, in a press release published Thursday, pointing to the establishment of a “Ponzi scheme” by the late p.-d. g of the company.
According to the classical scheme of the Ponzi scheme, the first subscribers are paid with the money of new investors, until exhaustion of the mechanism.
“The collapse of Quadriga in 2019 has resulted in massive losses to 76, 000 clients in Canada and around the world, who have lost at least $ 169 million canadians in total,” said the securities Commission of Ontario.
This organization is responsible for the regulation of the sector released Thursday the findings of an investigation of ten months.
“The majority of the $ 169 million of losses suffered by customers, is approximately $ 115 million, came from the fraudulent trade of Mr. Cotten,” have estimated the investigators, who have stated that millions of dollars were used to ” fund his lavish lifestyle “.
The old p.-d. g. Gerald Cotten, age 30 years, died of complications of Crohn’s disease during a humanitarian trip in India on December 9, 2018.
The company, which is presented as the main platform for cryptomonnaies in Canada, allowed to exchange bitcoin, litecoin and etherum.